About disputes
Highnote provides dispute management for all card products. This guide explains the procedures for managing disputes and chargebacks, including the submission process for resolution.
Overview
Account holders can submit a dispute to request reimbursement for a transaction. Common reasons are:
- They did not receive the merchandise or service they purchased
- They were dissatisfied with the merchandise or service they received
- They did not authorize a purchase made on their card
When Highnote determines that a dispute is valid, we initiate a chargeback through the card network (Visa, Mastercard) to seek recovery from the merchant.
Highnote manages the end-to-end dispute resolution process in accordance with all applicable regulatory and card network requirements and timelines. This includes:
- Receiving and processing disputes from account holders
- Managing documentation requests related to disputes
- Investigating and evaluating the validity of account holder claims
- Initiating chargebacks for eligible disputed transactions
- Providing status updates to account holders
- Issuing and reconciling provisional credits as required by regulatory requirements
- Continuously monitoring and ensuring compliance with regulatory and network rules
Dispute types
When an account holder submits a dispute, they are required to choose a dispute type that best describes the dispute reason. The following table outlines the categories and examples for each:
| Dispute Type | Description | Example |
| Authorization |
Issues with the initial authorization of a transaction, such as a missing or incorrect authorization Note: This dispute type is not applicable for account holder–initiated disputes. |
A clearing transaction without an authorization |
| Fraud | Unauthorized transactions, often due to stolen or lost cards or stolen card information | An account holder’s payment card is compromised and used for fraudulent purchases |
| Merchant dispute | Issues with the goods or services purchased | An account holder made an online purchase but did not receive the product. |
| Processing error | Errors in the transaction itself, such as incorrect amounts, account numbers, or currency | A duplicate charge on an account holder’s financial account |
Submit a dispute
The dispute lifecycle begins when an account holder submits a dispute for a qualifying transaction. Highnote requires specific information to initiate the review process and determine the appropriate resolution path.
Required information for dispute submission
To submit a dispute, the account holder must provide the following details:
- Dispute type
- Account holder’s full name (that exactly matches the name on the payment card)
- Last four digits of the payment card used
- Transaction ID
- Transaction posted date
- Posted transaction amount
- Disputed amount
- Merchant name or Merchant ID
- Reason for dispute (that clearly and fully explains why the transaction is being disputed)
- Supporting documents (e.g., receipts, merchant communication, cancellation confirmations)
Additional information requirements
Depending on the nature and reason code of the dispute, additional information may be required to proceed. Highnote will prompt for this information:
- When the dispute is being submitted, via the dispute form
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Or via follow-up communication from the Highnote Dispute team, if more detail is needed during investigation
Failure to provide the required or additional information within designated timeframes may result in delays or the inability to proceed with the dispute.
Dispute submission guidelines
To ensure efficient handling of disputes and to maximize the likelihood of a resolution in favor of the account holder, submissions must follow these guidelines and best practices:
- Eligibility Window: Disputes should be submitted as soon as possible and no later than 180 days from the transaction’s clearing date. This timeframe accounts for the strictest applicable regulatory and card network deadlines, which may vary by dispute type.
- One Dispute Per Transaction: Each disputed transaction must be submitted as a separate dispute case. Grouping multiple transactions under one case is not supported.
- Prioritize Merchant Resolution: For product or service disputes, have the account holder or support team contact the merchant first. A successful merchant resolution avoids the need for a formal dispute.
- Fraud Disputes: If the dispute involves suspected fraud, the associated payment card must be closed promptly to prevent further unauthorized use.
- Timeliness and Completeness: Submitting complete, accurate information and documentation at the time of intake improves processing speed and decision outcomes.
- Supporting Documentation Standards: All disputes must include complete and relevant supporting documents. Accepted formats include PDF, JPEG, PNG, and DOCX. Documentation should clearly support the dispute reason and include timestamps when applicable. To strengthen the case, submit receipts, merchant conversations, screenshots, and service timelines whenever possible.
- Escalation Readiness: For cases that may proceed to pre-arbitration or arbitration, retain all relevant documentation, including account holder statements and merchant communications.
- Roles and Responsibilities: Subscribers and account holders are responsible for initiating dispute submissions, ensuring data accuracy, and responding to document and information requests. Highnote manages the investigation, regulatory compliance, chargeback filing, and communication with card networks.
Dispute requirements
To maintain compliance and ensure fair treatment for account holders, Highnote follows regulatory and network requirements.
Regulation E timeframes
For consumer card programs governed by Regulation E, the following apply:
| Dispute Step | Requirement |
| Lost or stolen payment card notification | Account holder must report within 2 business days of discovering loss or unauthorized access |
| Unauthorized charge notification | Account holder must notify within 60 days of receiving the statement, and no later than 120 days from the transaction date |
| Initial response to account holder | Within 10 business days of receiving the dispute |
| Investigation period | Up to 45 calendar days for standard cases |
| Provisional credit issuance | If investigation exceeds 10 business days, credit must be issued to the account holders |
| Special case investigations (e.g., POS, new account, foreign transactions) | May extend up to 90 days |
| Post-investigation communication | Notify account holder of the outcome within 3 business days |
Network timeframes
| Dispute Step | Requirement |
| Chargeback submission with Visa | Most disputes must be filed within 120 days of the transaction or service date. Certain categories may allow shorter windows (e.g., 75 days). |
| Chargeback submission with Mastercard | Standard window is 120 days from the clearing or expected service date. Some reason codes allow shorter (e.g., 60 days) or longer (e.g., up to 540 days for travel-related disputes) timeframes. |
Track dispute status
Subscribers can monitor the status of dispute cases using the Highnote dashboard.
| Status | Description |
| Cancelled | Dispute was withdrawn or voided before processing |
| Initiated | Account holder or subscriber has submitted a dispute |
| In Progress | Case is under investigation by Highnote |
| Lost | Dispute was deemed invalid or was ruled against the account holder; no credit issued |
| Pending Resolution | Case outcome is under final review |
| Rejected | Case was denied because it did not meet required guidelines, was submitted outside the allowed timeframes, lacked evidence of an error, or was determined to be an invalid claim |
| Resolved | Case was closed with a direct credit to the account holder (no chargeback) |
| Won | Case resulted in a successful recovery of disputed funds |
Provisional credits
Highnote may issue provisional credits to protect account holders from financial harm during extended investigations.
- Eligibility criteria: Required for consumer products under Regulation E when resolution exceeds 10 business days. Optional for commercial card programs.
- Issuance process: Provisional credits are issued from a Subscriber’s product funding account to the account holder’s financial account via an internal Highnote transfer. Subscribers must use the Highnote API to initiate this transfer. For more information on using the API for internal transfers, see Transfer between Financial Accounts.
- Reversal scenarios: If a dispute is denied after a provisional credit has been issued, the credited amount is reversed. Highnote will provide the account holder advance notice prior to the reversal, ensuring transparency and adequate time for review.
Simulate disputes and chargebacks
To support testing and training, Highnote provides a simulation tool that lets Subscribers simulate dispute and chargeback scenarios, end-to-end.
- Use cases: Test dispute workflows, validate case behavior, train support staff
- Features: Simulate dispute submission, resolution outcomes, and credit issuance
- Access: Refer to the Simulate Disputes and Chargebacks section of the API documentation for setup instructions